This form is a "Residuals" Clause for a Consultant Agreement usable in consulting agreements where consultant exposure to commercial trade secrets or other confidential information is a factor. The residuals clause allows some disclosures of confidential information under certain limited circumstances.
The New York Residuals Clause for Consultant Agreement is an essential contractual provision that outlines the rights and obligations of both parties involved in a consulting engagement. This clause is particularly important in the state of New York, and it protects the consultant's rights to the residuals or future earnings generated from their work after the termination of the agreement. In a Consultant Agreement, the Residuals Clause in New York typically specifies that the consultant will retain ownership and control over any residual rights associated with their work. This means that even after the agreement expires or is terminated, the consultant will continue to receive compensation for future income derived from their original work or ideas. There are various types of Residuals Clauses for Consultant Agreements in New York, which may be tailored to suit the specific nature of the consulting engagement. These include: 1. Broad Residuals Clause: This type of clause grants the consultant broad rights to any future earnings resulting from their work, even if it is not directly related to the original project outlined in the agreement. It ensures that the consultant is entitled to a fair share of any future profits or benefits that arise from their contributions. 2. Limited Residuals Clause: In contrast to the broad clause, the limited residuals' clause specifies that the consultant can only claim residuals for future income that directly stems from their work on the specific project outlined in the agreement. This type of clause is more restrictive and may limit the consultant's entitlement to residuals beyond the scope of the initial engagement. 3. Negotiated Residuals Clause: This clause is customized and negotiated by both parties to determine the extent to which the consultant will receive residuals. The specific terms and conditions are decided based on the unique circumstances of the consulting engagement and the consultant's value and contributions. The New York Residuals Clause for Consultant Agreement is crucial in ensuring that consultants are fairly compensated for their work, even after the contract ends. It protects their intellectual property rights and acknowledges the potential value of their contributions, allowing for a mutually beneficial and transparent consulting partnership.
